EPO Encanto Potash Corp

VANCOUVER, Aug. 25 /CNW/ -- TRADING SYMBOL: TSXV EPO.V VANCOUVER, Aug. 25 /CNW/ - Encanto Potash Corp. ("Encanto") is pleased to announce the initial interpretations of results from its 65 square kilometre 3D survey over the Muskowekwan First Nation Lands in central Saskatchewan. Boyd PetroSearch ("Boyd") has been analyzing the data for approximately 4 weeks and results to date support the findings of the original 2D survey which was acquired in early 2009. From seismic interpretation the Prairie Evaporite Formation appears for the most part to be continuous and structurally undisturbed over the majority of the Muskowekwan Home Reserve. The nature of the beds combined with the encouraging results (3.6 meters at 25.2% K(2)O in the Patience Lake Member and 2.4 meters at 25.5% K(2)O in the Belle Plaine Member) from the core analysis of the potash members encountered in Encanto's initial Lestock 2-9 test hole are sufficient to warrant further delineation drilling on the Muskowekwan Project. Investors are invited to review the report on the Company's website at www.encantopotash.com or by clicking on the following URL: http://files.newswire.ca/509/BoydpptWebsite.pdf Encanto plans to use two rigs in our upcoming drilling program, to reduce the drilling time by 50%. Barlon Engineering Group Ltd. ("Barlon") of Calgary, Alberta has been selected to manage the upcoming delineation drill program for the Muskowekwan Project. The selection of the four sites of the upcoming program was based on the interpretations of the 3D data. Surveying, lease preparation, and applications for well licenses are underway. Actual drilling should commence in September and core results should be analyzed in time to have a CIMM compliant resource completed by November with the 43-101 technical report following shortly thereafter. The selection of the drill hole locations were based on consultation with North Rim Exploration Ltd. ("North Rim"), Boyd PetroSearch, and Company representatives in order to optimize the anticipated resource calculation. The selection process focused on the interpretation of 3D seismic results by Boyd. A summary report of this 3D analysis can be found on Encanto's website at www.encantopotash.com. The Barlon Engineering Group was formed in 1982 with the objectives of providing intermediate and junior oil & gas companies competent, reliable and cost conscious drilling and completion services management and field supervision. With its expertise well established in the oil & gas industry Barlon then began providing the same services to potash resource companies in 2008. Barlon Engineering Potash past and current clients include AMC (on behalf of BHP Billiton), Agrium, and Encanto. More details regarding the business of Barlon can be found on their website at www.barlon.ca. Boyd PetroSearch is a leading expert in seismic analysis in the potash industry having been involved in potash evaluation for over 20 years. They have advised most major and junior potash companies in Saskatchewan both for exploration drilling and mine planning and expansions. For further information on Boyd visit their website at www.boydpetro.com. Similarly, North Rim Exploration Ltd. (established in 1984) have been involved in over 100 potash evaluation projects ranging from major companies (Mosaic, BHP Billiton) to juniors (Potash One, Athabasca Potash). More information on North Rim is available on their website at http://www.northrim.sk.ca/. The technical content of this news release has been reviewed by Ross Moulton, VP of Exploration for Encanto, a qualified person as defined by NI 43-101. About Encanto: Encanto Potash Corp. is a TSX Venture Exchange-listed Canadian resource company engaged in the exploration and development of potash properties in the Province of Saskatchewan, Canada, the largest producing region for potash in the world. For additional information about Encanto Potash Corp., please visit the Company's website at www.encantopotash.com or review the Company's documents filed on www.sedar.com. ON BEHALF OF THE BOARD OF DIRECTORS "James Walchuck" Per: ---------------- James Walchuck President and CEO NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. The foregoing information may contain forward-looking information relating to the future performance of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. James Walchuck, President and CEO, Tel: 604-683-2402; Fred Leigh, Vanguard Shareholder Solutions, Tel: 604-608-0824, Tel: 1-866-918-0824

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